Hyundai

1915 is the birthday of Chung Ju-Yung as the oldest son (5 brothers, 2 sisters) of a farm family in the northern mountain region of Korea. The country fare in the east between China and Japan is not bipartite at the time yet, but since 1910 a Japanese colony. The doctrine Konfuzius plays a big roll not only for the population of Korea, but also in the family Chung Ju- Yungs. Among their forefathers is a famous representative of this philosophical direction and the grandfather educates the children in the village in the same body of thought. His parents are there models for diligence. Here the roots probably lie for the unbelievable career of the Chung Ju- Yung.

With the philosophy of the Konfuzius plays the respect for the social order and the forefathers an important roll. In the family a more significant roll falls to the father and in his death to the oldest son than the mother. This responsibility is instilled into the child already by the earliest youth. All together the work on the field probably takes a substantially bigger space than the school visit. Slowly more critically he sees the small yield of the field work. What strikes quite early his interest is in (few available) to books and actual newspapers.

With 16 he finishes the primary school and tries to realise his own, strong visions against the intention of his father. Three times he leaves Tongchun, in the beginning with a friend on foot and without a cent, later by railway. However, every time he is fetched back by his father. Anyway, he reaches with the third alignment with 17 to Saigon and can visit there with the (supposedly at home) money stolen a school for economy. With the fourth spot the alignment succeeds finally.

After many stopovers we find again him in a business of selling rice and grain in Saigon. He works there first parttime as a deliverer, then full time and already after relatively short time even{still} as a manager. His connections to his family are very well. He buys from the deserving money additional land for the family and marries a 16-year-old girl from his village selected by the parents. At the age of 22 years he opens his own store.

Nevertheless, the difficulties remain to the young enterpriser Chung Ju-Yung. Later one will say that so many problems in the life did not hinder but help him so far. Two years later the second world war has broken out in Europe. Japan attacks since 1937 China and Korea lies right in the middle. It is under law of war then and because of the rationing of food the trade of the Ju-Yung is closed.

The stay following now at home does not last long, and we see again him as a truck driver. Driving cars and repairing it is probably one of few possibilities which are not forbidden by the Japanese martial laws. He becomes a manager of a repair operation, but the pitch stays at him, because the store burns down. With new borrowed money he starts again. With his methods especially friendly to customer 'fast and reasonably' he can assert himself against overpowering competition. During three years he has the chance to make money. Then the Japanese authorities make him merge with another company. With this transaction he is practical out from the business.

In 1945 Japan capitulates and Korea gets under the influence of the USSR in the north and the American in the south. Chung Ju-Yung is again in Saigon. He has not given up his dream of own business. His talent to repair cars hits at a strong need of the American armed forces. The 'Hyundai of engine Industrial Company' develops. However, up to the building of own vehicles it is still a long time. Korea has quite different worries. Thus the main focuses of Hyundai activity will lie for the next approx. 20 years in the area of Heavy industry, bridges, streets and ship building.

In 1950 again a war breaks out. This time in the middle of Korea. It is about the supremacy of the respective substitutes of both victorious nations. On the side of the USSR likewise communist China is especially involved. Because both sides take almost the whole country in the course of the war in each case, the destruction is huge. The Korea war also raises the fear in Europe of the third world war. In 1953 Korea is divided in the middle, a macabre parallel to Germany.

Chung Ju-Yung comes, actually, from the orthern part of Korea. Nevertheless, his main activities always lie in the south of the country. This is the economically more prospering part and his nearness to the Americans makes him get lots of orders even during the war. The reconstruction of the country creates immense possibilities, but the difficulties of Hyundai want to take no end. A huge inflation-rate takes not only all the winst of the restoration of the Golyong bridge off the company but results in a big minus. People say Ju-Yung did not see it as a loss, but as a challenge. Strange words so very close to bankruptcy.

Still very long time Hyundai will have to pay off the debts, but the chain of courageous projects does not sever. As we will see later by the car development, the study during the execution is probably an important part of the company philosophy. With certainty also the accomodation of the first graduates of the Korean universities. The nearness of the company to the American army clearly improves the order position. With the new building of the bridge over the ultrawide Han River it strengthens reputation, but the economy in Korea still bobs up and down.

In 1960 student commotions with support of the population finish the mismanagement of the president Rhee Syng-man. A year later a military dictatorship develops under park Chung-hee. The short time of the democracy ens but creates clearly more economic growth. By its nearness to the new government a phase of wide growth begins for Hyundai. The company proceeds with the establishment of cement factories on up to now unknown terrain. Projects follow in the power station building and the start with heavy industry. Later the most prestigious task still in own country comes with the participation in the building of the more than 400-km-long highway of Seoul to Pusan.

Foreign projects increase the fame of the company. At first not so completely when one miscalculates with the building of a long highway in Thailand thoroughly. Then, however, gigantic showing projects develop all over the world. The most spectacular one is a harbour at cost of approx. 1 billion dollars in Saudi Arabia. All these projects carry the pride of a approx. 50-Mio.-nation in themselves. They are a part of an economic miracle as it also happpened in Germany after the war. The early export and the growth of own resources might be wider resemblances.

Thus one also approaches to the project Construction of vehicles. At the beginning, however, collaboration with foreign countries is urgently necessary. In 1966, about ten years before the beginning of a regulated serial production the company Hyundai Engine corporation is founded, led from 1969 on by Chungs brother Se-Yung Chung. For 1976 the building is planned by about 80,000 cars what 50,000 are more than are sold at home 1966. So the export is necessary. Hyundai also has in own country another three competitors with Kia, SSangyong and Deawoo. The government makes support of support of detailed plannings dependent.

The first developing assistant is the Ford company, for which one finishes the models Cortina sold to Korea and Granada. The closer own serial production moves, the more cooperations with automobile partners/competitor come about. The new vehicle will be called 'Pony'. Giorgio Giugiaro's ItalDesign has worked at its design by which certain resemblances with are unmistakeable almost at the same time appearing VW GOLF . Power train and suspension come from a little older Mitsubishi version. The engineers are from British Leyland.

The pony has the modern front-wheel drive with transverse engine and a diagonal tailgate. He is supplied with engines of from 1.2 to 1.6 litres of cubic capacity, enough for favorable road performances with the at that time light weight building. The nation is proud to be the second Asian nation after Japan with an own car production. Courageously the export begins immediately into well-chosen countries. Except the rust precaution still improvement-worthy with other manufacturers at that time there are little serious faults. However, with the export to Canada becomes clear that the vehicle was tested not enough in really cold circumstances.

One hardly believes as the access in a new technology in such a country is accompanied by the general public. Every new model variation, every little production record is worth a message. This is also necessary because the cars have problems in far-off countries. At that time Korea is still held to a great extent for a developing country. Only slowly the cars acquire a brand. Only the low price supports at the beginning the purchase. And there are established traders still a few.

Big risks runs Hyundai because it is dependent, e.g., on the deliveries of Mitsubishi. They must fear beside the failure also the opposite. Anyway, one is only a 'secondary manufacturer' and the most important supplier can shut off the supply at any time. Big is the purpose to become independent as soon as possible. But it should still last till 1993, until in the coupe 'Scoupe' the first own developed 'Alpha' engine debuts.
02/08